The proposals for national policy statements on energy - Energy and Climate Change Contents


Memorandum submitted by the Institution of Civil Engineers

1.  NATIONAL INFRASTRUCTURE POLICY

  1.1  ICE has consistently argued for UK infrastructure development to be placed on a long term, strategic footing. As a nation, it is estimated that we will require infrastructure investment in excess of £400B[88] in the coming decades to meet a range of policy goals including improved energy security and the transition to a low carbon economy. The UK needs political structures that provide stability, clarity and certainty if investors and clients are to fund and the supply side develop the capacity to deliver new and refurbished infrastructure on this scale. In addition as spelt out clearly in recent reports by ICE[89] and the Council for Science and Technology[90] the nation's infrastructure networks are increasingly interdependent and the risk of systemic failures or capacity constraints needs to be managed. Energy supply is at the heart of this interdependency.

  1.2  ICE has therefore been supportive of the provisions in the Planning Act 2008 relating to Nationally Significant Infrastructure projects including the creation of National Policy Statements (NPS) for. We believe that NPSs also have the potential to reinforce the benefits of other recent reforms. The newly formed Infrastructure UK (I-UK) has a remit to assess the UK's long term infrastructure needs and facilitate their delivery. Government has also appointed a Chief Construction Advisor, a role we believe can help improve the flow of information on future needs to the construction and civil engineering industries. Taken together this provides an opportunity to create a strategic framework which successive governments could develop and a series of institutions for improving delivery.

  1.3  The Energy National Policy Statements can establish the broad need for new infrastructure at a national level and explain how facilities will contribute to policy goals including targets for renewable energy generation and carbon dioxide reduction. This is very welcome as it will remove a major source of uncertainty, delay and cost. However it is unfortunate that the Infrastructure Policy Commission has no role in assessing the impact of the sum of its decisions. In relation to CO2 emissions, government's position is that the operation of the European Emissions Trading Scheme will allow the UK to manage the risk of the market delivering new energy infrastructure that would result in higher than desirable emissions. However there remains a task of managing other risks, such as long term resilience and cross network interdependencies. Similarly there are a number of areas where individual nationally significant infrastructure assets will require considerable amounts of associated infrastructure, for example road and rail links to major power stations and pipelines for Combined Heat and Power and CCS fitted fossil fuel plants. There is a danger that these requirements may fall between NPSs or between the Nationally Significant Infrastructure process and the Town and Country Planning Act. We believe that Infrastructure UK has the potential to help address these problems by working alongside the IPC to assess the impact of its decisions on the long term health and "fit for purpose" status of energy and other networks.

2.  ELECTRICITY, HEATING AND TRANSPORT

  2.1  The Energy NPS do a good job in clarifying electricity generation capacity requirements for the period to 2025, including broad direction on the desired mix between renewable and non renewable sources. However we believe government does need to come forward with more detailed policy for the heat and transport sectors. In this context the Committee should note that heat accounts for 49% of all primary energy consumed in the UK, the majority of which is derived from gas.

  2.2  A transition to a low carbon economy implies a large scale shift to electrification of heat and transport. This has significant implications for infrastructure for both generation and transmission and this does need to be better reflected in National Policy Statements.

3.  SUBJECTIVE ELEMENTS OF NPSS

  3.1  A number of terms that are open to a wide degree of interpretation including "good design" and `economically and technically viable' are used in the energy NPSs. We would welcome clarity on how they will be used in the decision making processes of the Infrastructure Planning Commission (IPC).

4.  INITIAL COMMENTS ON INDIVIDUAL CATEGORIES OF ENERGY INFRASTRUCTURE

  4.1  Combined Heat and Power: We welcome the requirement to consider the inclusion of Combined Heat and Power as a planning consideration for proposals for new power generation stations. ICE's recent report, Why Waste Heat identified significant potential for capturing heat lost during electricity production for use in residential and commercial heating.[91]

  4.2  Carbon Capture and Storage: We welcome the inclusion of a requirement for Carbon Capture Readiness (CCR) for future fossil fuel power stations. However we note that there are still many unknowns around Carbon Capture and Storage (CCS) technology which will only be resolved through the ongoing demonstration plant process. Minister may therefore need to be willing to amend NPSs as the demonstrator programme advances to avoid unnecessary delays in deployment.

  4.3  Biomass and Waste Combustion: We welcome the inclusion of waste and biomass in the Renewable National Policy Statements. Recovery of energy from waste materials will need to be a consideration in the development of any long term energy policy.

January 2010





88   Helm, D, Wardlaw J and Caldecott, B (2009), Delivering a 21st Century Infrastructure for Britain, Policy Exchange:London. Back

89   ICE (2009) State of the Nation-Defending Critical Infrastructure, ICE:London. Back

90   Council for Science and Technology (2009) A National Infrastructure for the 21st Century, HMSO:London. Back

91   ICE (2009) Why Waste Heat. Back


 
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